In today’s market, we’re like a semi-truck going down a hill.
Everyone knows that you’re not supposed to use your brakes when you’re driving down a hill because your brake pads get worn out.
You’re supposed to shift to a lower gear.
But if this was a real recession, we wouldn’t be going downhill. We would be going flat.
If the economy was struggling, people would not be able to buy houses. They wouldn’t make their payments. They’d be suffering.
We’re in a market where we are artificially slowing things down by raising rates. It’s like using your brakes when you’re going down this hill.
If we take our foot off of that brake, you’d see home prices go up. You’d see transactions happening in greater numbers. You’d see days-on-market start to go back down.
It is important to note this is not a recession based on fundamental problems in our economy.
This is absolutely something that the government has chosen to do for the sake of trying to slow down inflation and rising home prices.
This is something that real estate investors need to be aware of – the decision the Fed makes.
These macroeconomic factors play a huge role in what your investment is worth or what the cash flow numbers are going to look like when you buy it.
Are you interested in joining a league of like-minded people committed to saving money and developing financial independence? Keep an eye out for David’s next educational product, the Spartan League. “Text ‘Sparta’ to 59559 for more info.”
Someone asked me the other day, “David, if rates keep going up, do you see prices plummeting?”
Here’s my response…
I don’t see them plummeting, because there is such a constricted supply.
If you’re a homeowner and you’ve got a 3% interest rate and you could sell your house and get a 7% interest rate, unless you have to move, you’re probably not going to do it, especially with your house being worth less now than what it was before.
You’re going to wait.
So, because we’re not seeing a bunch of supply flood the market, we’re not seeing a crash in prices.
That’s what we saw happen the last time we had a crash. There was so much supply.
There were way more properties than people could afford to buy or even wanted to buy, which is what led to the big decrease in prices.
That’s what confuses people who that think because we’re going into a recession, prices should be dropping like they did last time.
Don’t forget to set a reminder in your phone that I’ll be on YouTube live tonight at 5 PM PST with Kyle. We’ll be talking about whether or not it’s a good idea to buy a house in 2023. Come join and ask us questions!
What’s the key to success?
Goals, plans, and actions – GPA.
Not grade point average. That’s what they teach you in the educational system.
In the entrepreneurial world, GPA is goals, plans, and actions.
It’s not about wanting a better life, it’s about having a plan to get a better life.
“A goal is a dream with a deadline” – Napoleon Hill.
If you don’t put a deadline on your dreams, they don’t become goals.
Otherwise, you’re just wishing.
In March, I’ll be hosting an in-person retreat in Scottsdale to help you make 2023 your best real estate investing year.
Through immersive training, expert insights, and valuable networking opportunities, you’ll gain the knowledge and support you need to have your best year ever.
Details will be released very soon, so stay tuned on my Instagram to be the first to know!
